1. Resources Change over Time Review: What are the different types of resources?

2. When do materials become a resource?  Natural materials become valuable (commodities) when they become useful to people.  Technology often determines whether natural resources are useful or not

3. Wood CoalPetroleum  Wood:  Overall value has decreased because of technology  Wood, although renewable, takes so long to replace that it can be thought of as nonrenewable  Decreased use in wood, and more use of synthetic (imitation) materials because of its (wood’s) value

4. Wood CoalPetroleum  Coal:  Value of coal has decreased because of pollution and mining problems  Coal creates pollution when it burns  Mines have a negative impact on environment and people  Oil and gas are competitors

5. Wood CoalPetroleum  Petroleum (oil)  Still primarily used as fuel for transportation  Increases in transportation (technology) increased the call for fuel oil  Petroleum is expensive and causes environmental concerns, like pollution  Other forms of energy are being explored

6. Wood CoalPetroleum  Nuclear  High use  Concern over contamination and waste

7. Wood CoalPetroleum  Other sources of energy:  Other sources of energy are being explored, such as wind and solar  Not used much yet  Cost of installation  Unattractive aesthetics (looks)

8. Comparative Advantage  We have oil in the United States that we have not extracted. Why don’t we use our own oil?  Comparative advantage: ability of one country to produce a good or service at a lower cost, or more effectively than another country  Examples  India attracts IT jobs  China manufactures shoes  U.S. researches and manufactures pharmaceutical drugs

9. Limited Natural Resources  How can countries like Japan and Switzerland be so developed if they have limited natural resources?  Developed human capital  Specialized in high-demand goods  Interdependent on wealthy nations